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Scrat [10]
2 years ago
10

Sea Side Enterprises is trying to predict the cost associated with producing its anchors. At a production level of​ 5,300 anchor

s, Sea Side Enterprises average cost per anchor is​ $54. If​ $18,000 of the costs are​ fixed, and the plant manager uses the cost equation to predict total​ costs, her forecast for​ 9,000 anchors will be​ (Round any intermediary calculations to the nearest​ cent.)
Business
1 answer:
Lena [83]2 years ago
8 0

Answer:

The total cost at 9000 anchor is $473400

Explanation:

To come up with the cost equation used by the manager, we need to find the variable cost per unit.

The total cost at production level of 5300 is = 5300 * 54 = $286200

Out of the total costs, $18000 are fixed.

Thus, variable costs at production of 5300 is = 286200 - 18000 = $268200

The variable cost per unit is = 268200 / 5300 = $50.60

Let x be the number of anchors produced.

The cost equation is = 18000 + 50.60x

At 9000 anchors, the total cost will be,

Total cost = 18000 + 50.60 * (9000)  = $473400

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You are considering the following two mutually exclusive projects that will not be repeated. The required rate of return is 11.2
postnew [5]

Answer:

a. project A; because its NPV is about $335 more than the NPV of project B.

Explanation:

As in the question it is mentioned that the required rate of return for project A and project B is 11.25% and 10.75% respectively.

Here we have to determined the net present value for both projects having different required rate of return

So based on the net present value the first option is correct as the project A is more than the project B

Therefore the first option should be accepted

5 0
2 years ago
A company uses the FIFO method for inventory costing. At the start of the period the production department had 20,000 units in b
UkoKoshka [18]

Answer:

equivalent cost per unit for labor: $4.1982

Explanation:

complete and transferred    165,000

work on ending WIP               16,500  //   22,000 x 75%

previous work on beginning (8,000) //  20,000 x 40%

Equivalent units                   173,500

labor cost added during the period 726,825

equivalent cost 726,825/173,500 = 4.198193084

equivalent cost per unit for labor: $4.1982

7 0
2 years ago
Attraction Corporation produces specially machined parts. The parts are produced in batches in one continuous manufacturing proc
Juliette [100K]

Answer:

c. machining.

Explanation:

Unit level activities take place in order to manufacture the product. This manufacturing process has four activities:

  • engineering
  • setups
  • machining
  • inspecting

Unit level activities depend  on the amount of units produced, this means that as more units are produced, more costs will be allocated. In this case, engineering, setups and inspecting are done on a batch basis, which means that they are batch level activities.

Only machining costs are proportional to the number of units produced.

3 0
3 years ago
Order the bond types below from lowest to highest risk of default.
Ymorist [56]

Answer:

According to the risk of default from lowest to highest:

1. U.S. Treasury bonds.

2. Corporate bonds.

3. Junk bonds

Explanation:

Bonds are ways through which a governments and corporations are able to raise money in-order to finance the big projects.

It is issued to the public through a mapped out auction based in months or years validity. <em>And, by buying a bond, you're giving the issuer a loan, and they agree to pay you back the face value of the loan on a specific date, and to pay you periodic interest payments.</em>

4 0
2 years ago
Read 2 more answers
A freelance writer must choose how to spend her time working on several different types of projects. Newspaper stories take 3 ho
Paraphin [41]

Answer:

3N + 25M + P ≤ 45

Explanation:

Let the number of Newspaper Stories taken=N

Newspaper stories take 3 hours to write.

Total Hour spent on Newspaper Stories=3N

Let the number of Magazine Articles taken =M

Magazine articles take much longer to write 25 hours per article.

Total Hour spent in Magazine Articles=25M

Let the number of Proofreading jobs taken =P

Proofreading pays for every 1 hour

Total Hour spent in Proofreading jobs=P

Since both newspaper stories and magazine articles must be completed in the week they are started.

The writer doesn't want to work more than 45 hours per week. So his total hour in a week is less than or equal to 45.

The Constraint that limits the amount of time the writer will work in a week is given as:

3N + 25M + P ≤ 45

7 0
2 years ago
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